One of the country’s oldest shoe shops was under new ownership today after its management team agreed a £50m buyout.
The deal for Leicester-based Stead & Simpson, which was founded in 1834 and has more than 400 outlets in the UK, ended a nine-month sale process after it began a strategic review in March.
The buyout led by chief executive David Lockyer and finance director Peter Foot marks the end of the involvement of investor Development Securities, which bought into the business in the 1980s.
As well as trading under the Stead & Simpson brand, the company includes budget shoe retailer Shoe Express, Peter Briggs and Lilley & Skinner.
Its stores stock their own label footwear, along with brands such as Hush Puppies, Dr Martens, Clarks, Ecco and Wrangler footwear.
Bank of Scotland will have a stake in the company after backing the management team.
It is thought John Shannon is retiring as chairman and cashing in a holding worth at least £10m.
Mr Lockyer and Mr Foot are said to have reinvested a significant percentage of the sale proceeds back into the company.
Stock market-listed Development Securities told the stock market today that it had sold its stake in Stead & Simpson for £13m and also received full repayment of a £2m loan.
Stead & Simpson appointed Clearwater Corporate Finance in March to advise on whether it should opt for a sale or a flotation.
The group started life as a footwear manufacturer, but stopped this in the 1960s to concentrate on the retail side of the business. By the mid-1970s it had around 300 stores.
An acquisition spree in the late 1990s saw it add chains such as Shoe Express and Peter Briggs to its portfolio.
Phil Burns, partner at Clearwater Corporate Finance, said: “Having seen management turn Stead and Simpson around since the late 90s, we are delighted to have helped them achieve what we hope will prove to be a very successful management buy out.
“The business has some outstanding prospects for growth across its
varied store formats.”
References: EGi News 23/12/05
